Bike Shop Move Sparks Tax Revenue Dispute

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Two California cities are reportedly near resolving a tax revenue dispute over a dealership that moved from one city to the other four years ago.

Laidlaw Harley-Davidson moved from Rosemead to neighboring Baldwin Park in 2003 to take advantage of a freeway-close location. But a federal judge ruled that Baldwin Park had violated a prohibition on luring dealers from other cities with financial incentives, according to the Pasadena Star-News.

The cities reached an agreement in 2004 to share the dealer's tax revenue, but Rosemead sued Baldwin Park in February, claiming it has been shorted $40,000 in accessory sales tax income from the dealership.

Baldwin Park contends the deal only covers tax revenue from the sale of bikes and parts, while Rosemead believes the deal to cover tax revenue on apparel, accessories and other merchandise the dealer sells.

Owner Bob Laidlaw could not immediately be reached for comment about how the dispute has impacted his business.